for tuition. Room and board, books, fees, equipment and other similar expenses don’t qualify. Paying tuition directly to the school helps to ensure your money will be used for the educational purpose you intended. A grandparent can still give a grandchild a separate tax-free gift each year...
"Don't wait until your kid's about to go to college to start thinking about it," says Paulina Mejia, national fiduciary counsel at Fiduciary Trust International, a wealth management company. "When you have a kid or grandkid, think about setting one up and having it grow...
A major drawback to ownership of a 529 plan account for grandparents is the possible loss of Medicaid assistance. When Medicaid evaluates a grandparent's means, assets in a 529 set up by that grandparent are considered that grandparent's assets. The 529 plan account balance would have ...
People will sometimes consider saving in a minor's trust instead of a 529 account, but such trusts aren't the best option for education-focused savings. If the grandparent wants to use the annual gift tax exclusion when they fund the trust, IRS rules demand that the trust documents allow ...
"When you have a kid or grandkid, think about setting one up and having it grow and compound tax-free. It's really a powerful investment vehicle." Next:Vocational and trade school tuition and fees 3/16 Credit Vocational and trade school tuition and fees The 529 college ...
"When you have a kid or grandkid, think about setting one up and having it grow and compound tax-free. It's really a powerful investment vehicle." Next:Vocational and trade school tuition and fees 3/16 Credit Vocational and trade school tuition and fees The 529 college s...
"When you have a kid or grandkid, think about setting one up and having it grow and compound tax-free. It's really a powerful investment vehicle." Next:Vocational and trade school tuition and fees 3/16 Credit Vocational and trade school tuition and fees The 529 college ...
"When you have a kid or grandkid, think about setting one up and having it grow and compound tax-free. It's really a powerful investment vehicle." Next:Vocational and trade school tuition and fees 3/16 Credit Vocational and trade school tuition and fees The 529 college ...
"Don't wait until your kid's about to go to college to start thinking about it," says Paulina Mejia, national fiduciary counsel at Fiduciary Trust International, a wealth management company. "When you have a kid or grandkid, think about setting one up and having it grow...
Anyone can open a tax-advantaged529 college savings plan, including students, parents, grandparents and other relatives. It is used to pay for college, but not all expenses qualify. Withdrawals from 529 plans are called distributions, and they must be used toward qualified education e...